Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Republic Bancorp (NASDAQ: RBCAA) and the best and worst performers in the regional banks industry.

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

The 94 regional banks stocks we track reported a satisfactory Q3. As a group, revenues missed analysts’ consensus estimates by 1.1%.

Thankfully, share prices of the companies have been resilient as they are up 5.9% on average since the latest earnings results.

Republic Bancorp (NASDAQ: RBCAA)

With roots dating back to 1974 and operating across multiple states including Kentucky, Indiana, Florida, Ohio, and Tennessee, Republic Bancorp (NASDAQGS:RBCA.A) is a Kentucky-based financial holding company that operates a bank offering traditional banking, mortgage services, and specialized financial products.

Republic Bancorp reported revenues of $91.52 million, up 11% year on year. This print fell short of analysts’ expectations by 0.9%. Overall, it was a mixed quarter for the company with a narrow beat of analysts’ tangible book value per share estimates but a slight miss of analysts’ revenue estimates.

Interestingly, the stock is up 2.9% since reporting and currently trades at $70.40.

Read our full report on Republic Bancorp here, it’s free for active Edge members.

Best Q3: Customers Bancorp (NYSE: CUBI)

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp (NYSE: CUBI) is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Customers Bancorp reported revenues of $232.1 million, up 38.9% year on year, outperforming analysts’ expectations by 7%. The business had a stunning quarter with a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 10.6% since reporting. It currently trades at $72.53.

Is now the time to buy Customers Bancorp? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: The Bancorp (NASDAQ: TBBK)

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp (NASDAQ: TBBK) is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $174.6 million, up 38.8% year on year, falling short of analysts’ expectations by 10%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income estimates.

As expected, the stock is down 12.6% since the results and currently trades at $67.50.

Read our full analysis of The Bancorp’s results here.

1st Source (NASDAQ: SRCE)

Tracing its roots back to 1863 during the Civil War era, 1st Source Corporation (NASDAQ: SRCE) is a regional bank holding company that provides commercial, consumer, specialty finance, and wealth management services across Indiana, Michigan, and Florida.

1st Source reported revenues of $110.7 million, up 13% year on year. This number topped analysts’ expectations by 1.3%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ net interest income estimates and a beat of analysts’ EPS estimates.

The stock is up 9% since reporting and currently trades at $64.21.

Read our full, actionable report on 1st Source here, it’s free for active Edge members.

Columbia Banking System (NASDAQ: COLB)

Created through the merger of two Pacific Northwest banking institutions with deep regional roots, Columbia Banking System (NASDAQ: COLB) operates Umpqua Bank, providing commercial, consumer, and wealth management services across eight western states.

Columbia Banking System reported revenues of $582 million, up 17.2% year on year. This print surpassed analysts’ expectations by 1.9%. It was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ tangible book value per share estimates.

The stock is up 8.2% since reporting and currently trades at $28.17.

Read our full, actionable report on Columbia Banking System here, it’s free for active Edge members.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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